Shortage-hit Venezuelans scratch heads over complex devaluation

CARACAS Feb 13 (Reuters) - Venezuelans puzzled on Friday
over the impact of a complicated currency devaluation and
fretted that dire product shortages in the OPEC nation's
recession-hit economy would not go away.

President Nicolas Maduro's socialist government on Thursday
unveiled a 69 percent devaluation via a new "free floating"
currency system known as Simadi, the third of three-tier
exchange controls created by his predecessor Hugo Chavez.

"They're doing this because they don't have any money," said
an 83-year-old man, who only gave his name as Felix, standing in
a senior citizens' line with about 50 other people to buy rice
and coffee at a Caracas supermarket.

"This is not going to solve the problem. We're going to keep
waiting in line to buy anything we need."

The Simadi system has an exchange rate of 170 bolivars per
dollar, but state officials insist most of the country's foreign
exchange will be sold at two preferential rates: 6.3 for
essential goods such as food staples, and 12 for other sectors.

The country's central bank administers dollars at those two
rates, but importers complain that allocations are limited,
often delayed and require overwhelming paperwork.

Dollars on the black market fetch 190 bolivars.

The two preferential exchange rates of 6.3 and 12 can help
keep prices down for food and medicine, but businesses
consistently struggle to get dollars at the rate, which means
they cannot bring in raw materials or machine parts.
Continuación...